Import PVC K67 prices at $1600/ton see resistance from Turkish buyers
Allocations from the US PVC were also not comfortable, but may improve in the coming weeks now that Westlake lifted the force majeure on its supplies in early 2021. “Demand from Brazil is still active which keep suppliers free from stock pressure. We expect it to calm down in February,” noted a player.
At the same time, buying interest for K67 grade subsided relatively, admitted sellers, whose offers stood on the high end of the market. “Tightness and healthy demand continue to pervade PVC K70 and K58 markets, however,” said a player.
New highs received lukewarm reaction
The market has been relentlessly rising since mid-May 2020 on vivid end demand and a severe tightness amid low production rates at regular PVC producers. Buyers had to pay massive raw material hikes in order to maintain their manufacturing amid a pent-up demand for end applications.
As 2021 started, import duty-free PVC K67 level rose by $80/ton (5%) when compared to the week ending on December 27. Dutiable prices gained $40/ton (2.5%) in the same period, the weekly average data from ChemOrbis revealed.
Some traders attempted for the level of $1600/ton CIF Turkey, cash for both European and US cargos. Yet, they received a mild reaction from PVC consumers. “Some buyers are covered. Moreover, they plan to wait until hearing offers from major European producers, who are yet to announce any prices or allocations to Turkey,” commented a distributor.
Logistic issues, firm upstream continue to support markets
The sentiment on the sellers’ side is kept strong by the ongoing supply limitations, higher crude oil futures and ethylene prices. Yet, how demand will evolve as the month proceeds remains as a question mark for the time being.
“Prices on the high end are not likely to see acceptance considering that the Turkish market has already been inflated for months now. End demand may cool off depending on how weather conditions will evolve,” opined a participant.
Turkey’s premium over Europe surpassed $300/ton
According to ChemOrbis data, Turkey’s duty-free K67 market trades around $315/ton above Italy’s local market nowadays. In Europe, the PVC market has been influenced by the ongoing holiday mood this week. The €65/ton higher ethylene settlement for January is expected to pave a way for new hike attempts in the region soon.
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